Side Hustle Tax Checker for US Students

How this checker works

• Your net profit is your side income minus your business costs.
• Your net earnings from self-employment are 92.35% of your net profit (line 4a of Schedule SE).
• If your net earnings are less than $400, you do not owe self-employment tax (line 4c). In terms of profit, that is about $434.
• Self-employment tax is 12.4% for Social Security plus 2.9% for Medicare, 15.3% in total, on your net earnings. This estimate assumes your total earnings are below the Social Security limit, which is true for most students.
• Half of your self-employment tax is deductible when you work out your income tax (line 13).
• The IRS says individuals, including sole proprietors, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.

What it does not include

• Federal or state income tax. Whether you need to file a return depends on your total income and situation. The IRS Interactive Tax Assistant can help you check.
• The 0.9% Additional Medicare Tax for higher earners, the optional methods on Schedule SE, and wages from a job that use up the Social Security limit.
• Nonresident alien rules. If you are on an F-1 or J-1 visa, ask your school's international student office before you earn money.